In light of the recent market collapse, Nexo has turned to Citibank for advice on potential acquisitions and liquidity support for struggling crypto platforms.
Numerous crypto-related firms are struggling as a result of the current bear market. To stay alive, crypto mainstays are either stopping hiring, laying off entire employees or freezing exchanges and withdrawals “to safeguard consumers” due to the Luna scandal and asset prices plunging to levels not seen in over two years.
All businesses are not feeling the consequences of the crypto winter. For instance, the Binance team has increased its employment drive.
On the DeFi front, Nexo is attempting to seize market share by refinancing competing DeFi platforms that are adrift.
Improved Planning = Improved Business
Nexo recently submitted Celsius a letter of intent outlining its intentions to buy the latter’s qualifying assets to save the platform. Nexo has already posted a statement on its blog explaining why it was able to weather the storm better than some rivals and how it plans to profit from their missteps.
The spokesman for Nexo claimed in the public statement that making the LOI above public was an exceptional choice to attract attention. Behind closed doors, the business claimed to have made comparable goodwill gestures to other platforms, promising upcoming changes at a more appropriate time.
Citibank Has Been Invited
Nexo has enlisted Citibank professionals to help in its goal to rescue a wounded industry, “much like the charge led by J.P Morgan over a century ago,” to better shield itself from the current circumstances.
Nexo explained why it can step up and expand its impact throughout the DeFi industry. Nexo emphasized its tight collateralization strategy, which is far stricter than that of others, as well as its $775 million insurance package, which renowned banking organizations like Lloyd’s backed.
The release stated that the company had never been hacked or exploited for either client data or money, drawing attention to Nexo’s emphasis on asset security.
Overall, Nexo appears to be well-positioned to profit from the current circumstance. However, it is still unclear how extensive the consolidation will be and what long-term ramifications it might have.